Analysis: TrialPay is best explained by an
example. If someone fills a shopping cart at an ecommerce site,
they might get a pop-up offering something in their cart for
free--in exchange for signing up for promotions from a TrialPay
client company. The idea behind the service is that everybody
wins: the customer gets free goods, the retailer gets a kickback
from the promotion company, and the company promoting its
services gets a customer.

TrialPay was started in 2003 has raised over $15 million. 2,500
merchants use Trialpay, and the service is reportedly adding 10
new merchants a day. In August 2007, The Wall Street Journal
reported that the company is losing money, has 50 employees, and
generates $10 million in annual revenue.

We estimate that TrialPay might generate $15 million in revenue
in 2008. We value the company at about $80 million.